Archive · 1 Sep 2026
FSSAI Crackdown Could Expand India’s Organised Paneer Market
India’s food safety regulator is taking action against analogue paneer.
Analogue paneer uses ingredients such as vegetable oils or starches instead of being made entirely from milk.
Some states have restricted or banned these products.
Milky Mist, a large packaged-paneer company, believes this could help organised dairy companies sell more paneer.
Most paneer in India is currently made and sold by unorganised businesses.
Milky Mist’s factory can make 150 tonnes of paneer each day but is using about 60% of its capacity.
The company says paneer sales could grow faster if the restrictions spread nationwide.
It also reported much higher profit and revenue in the first quarter.
FSSAI enforcement against analogue paneer is expanding across several Indian states.
Milky Mist says a nationwide ban could unlock more of the estimated ₹1-lakh-crore paneer market.
About 94% of India’s paneer market is currently controlled by unorganised producers.
Milky Mist operates a 150-tonne-per-day paneer plant at roughly 60% capacity utilisation.
Milky Mist’s first-quarter net profit rose to ₹64.68 crore, while operating revenue increased 44% to ₹973.45 crore.
- Who
- The Food Safety and Standards Authority of India, state governments, Milky Mist Dairy Food and Zomato are involved.
- What
- Authorities are enforcing restrictions against analogue dairy products being sold or used as paneer, while Milky Mist anticipates increased demand for packaged paneer.
- When
- The enforcement is ongoing; Milky Mist discussed the outlook at its first earnings briefing after listing, and reported results for the first quarter.
- Where
- The crackdown currently includes states such as Maharashtra, Gujarat, Uttarakhand, Chhattisgarh and Madhya Pradesh, with action also reported in parts of Delhi. Milky Mist’s paneer plant is in Perundurai, Tamil Nadu.
- Why
- The action aims to restrict products presented or used as paneer despite containing non-dairy substitutes, potentially shifting demand toward organised dairy producers.
- Estimated paneer market
- Around ₹1 lakh crore in India
- Unorganised market share
- Approximately 94%
- Milky Mist organised-market share
- Around 20%
- Milky Mist paneer capacity
- 150 tonnes per day
- Plant utilisation
- Approximately 60%
- First-quarter net profit
- ₹64.68 crore, nearly ten times higher year-on-year
- First-quarter operating revenue
- ₹973.45 crore, up 44%